Key Highlights
- Major indexes extended their rally for a second consecutive week, with the S&P 500 advancing 3.5%, Dow climbing 3%, and Nasdaq surging 4.7%
- Financial giants including JPMorgan, Goldman Sachs, and Bank of America unveil quarterly results in coming days
- Consumer prices recorded their steepest monthly climb since June 2022 in March, primarily due to energy costs
- Crude oil trades around $98 per barrel while futures contracts point to a decline toward $85 by July, potentially boosting equities
- Technology sector shows stark division: software down 30% while semiconductors rally over 20% year to date
Equity markets concluded their second straight week of gains as focus shifted toward the beginning of quarterly reporting season. The S&P 500 advanced 3.5%, the Dow added 3%, and the Nasdaq posted a 4.7% increase over the five-day period. Despite remaining in negative territory for the year, all three benchmarks now stand within 1% of positive annual performance.
The coming days feature an intensive earnings calendar. Goldman Sachs delivers results Monday. JPMorgan Chase, Citigroup, and Wells Fargo present findings Tuesday. Bank of America and Morgan Stanley are scheduled for Wednesday, while Netflix and Taiwan Semiconductor round out the week on Thursday.
Geopolitical tensions remain in sharp focus. Weekend negotiations in Pakistan between US and Iranian officials ended without an agreement after Tehran declined to commit to halting nuclear weapon development, Vice President JD Vance confirmed Saturday evening.
Crude Prices Remain Critical Market Driver
Following the outbreak of hostilities between the US and Iran, petroleum markets have commanded unprecedented attention from investors. West Texas Intermediate crude finished Friday’s session around $98 per barrel, representing a substantial increase from approximately $68 before military actions commenced.
Futures contracts for July delivery are pricing oil around $85. Evercore ISI’s Julian Emanuel indicated that WTI trading in the “low-to-mid $80s” would eliminate the primary obstacle facing equity valuations.
The two-week ceasefire agreement involving the US, Israel, and Iran provided market participants with renewed optimism during the previous week. The durability of this pause will determine both crude trajectories and overall market sentiment.
Friday’s consumer price data revealed headline inflation accelerated 0.9% during March, marking the most pronounced monthly advancement since June 2022. Analysts attributed the majority of this expansion to energy-related price pressures stemming from the international conflict.
University of Michigan consumer sentiment plunged to historic lows in April, though 98% of survey responses were gathered prior to the ceasefire announcement.
Technology Sector Reveals Sharp Performance Divide
Disparity within equity markets has intensified dramatically. The iShares Software Sector ETF declined more than 7% during the past week and currently trades down 30% for the year.
Salesforce leads the decline, falling over 35% in 2026. AppLovin, Intuit, and ServiceNow have each retreated more than 40%. Microsoft, Palantir, and Oracle have each declined more than 25%.
Chip manufacturers present a contrasting picture. The VanEck Semiconductor ETF has climbed over 20% year to date. Intel, Applied Materials, Lam Research, and Marvell Technologies have each gained more than 50%.
ASML announces results Wednesday, with Taiwan Semiconductor following Thursday. Taiwan Semiconductor previously disclosed robust March revenue figures, signaling sustained demand for AI processing chips.
Netflix also reports Thursday, capping an exceptionally busy earnings week.
